HomeMy WebLinkAboutFND-014-07 Addendum
Cl~il]gron
REPORT
FINANCE DEPARTMENT
Meeting:
GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
Date: SEPTEMBER 17, 2007
solution #:(JP/J-S55'07
ADDENDUM TO
Report #: FND-014-07 File #:
By-law #: /)..oo7-/'1S
Subject:
DEVELOPMENT CHARGES BY-LAW AMENDMENT: MAJOR OFFICE
BUILDINGS IN SCIENCE AND ENERGY PARKS
Recommendations:
It is respectfully recommended that the General Purpose and Administration Committee
recommend the following:
1. THAT the Addendum to Report FND-014-07 be received;
2. THAT based on a review of S1 0(2) of the Development Charges Act, there is no
need to alter or amend the Development Charges Background Study, May 2005,
prepared by Hemson Consulting Ltd.;
3. THAT the proposed modification to the Development Charges By-Law be
deemed to be minor and consistent with the intent of the amendment to the By-
law considered at the statutory public meeting and further that no additional
public meeting to consider the amendment is required.
4. THAT the exemption provided for in the amendment to the By-Law be effective
on September 24, 2007; and
5. THAT the attached By-Law amending the Development Charges By-Law 2005-
108 be recommended to Council for enactment.
Submitted by:
Nancy lor, B . ., CA,
Director of Finance.
Reviewed bY:O ~ ~
Franklin Wu,
Chief Administrative Officer.
NT/hjl
REPORT NO.: ADDENDUM TO FND-014-07
PAGE 2
BACKGROUND AND COMMENT:
1.0 On June 27,2005, Council adopted the existing development charges with the
approval of Report FND-007-05 and the accompanying By-Law 2005-108. This
By-Law, by statute expires after five years or June 30, 2010.
1.1 At the General Purpose and Administration Committee meeting held on June 18,
2007 and the Council meeting held on June 25,2007, Council adopted the
following resolution #GPA-461-07:
"THAT Report FND-014-07 be received;
THAT based on a review of S 10(2) of the Development Charges Act, there is no
need to alter or amend the Development Charges Background Study, May 2005,
prepared by Hemson Consulting Ltd.;
THAT the exemption provided for in the amendment to the By-Law is proposed to
be effective on September 10, 2007; and
THAT a public meeting be held on September 4, 2007 in accordance with
Section 19 of the Development Charges Act"
DEVELOPMENT CHARGE BY-LAW AMENDMENT:
2.0 A municipality has to hold a public meeting on the amendment, having provided
three weeks notice of the meeting, and has to have made the background study
and proposed by-law amendment available two-weeks prior to the meeting. The
public meeting is September 17, 2007 and was advertised commencing August
29,2007. The applicable documents were available at the Clerk's Department
commencing June 18, 2007, see Attachment #1.
2.1 The proposed modification to the Development Charges By-Law is deemed to be
minor and consistent with the intent of the amendment to the By-Law considered
at the statutory public meeting so no additional public meeting to consider the
amendment is required.
2.2 The proposed amendment will provide a 50% refund of Development Charges for
major office buildings that are LEED certified within the Clarington Energy Park,
as identified in Schedule 6(a) and the Clarington Science and Technology Park
as identified in Schedule 6(b) to By-Law 2005-108.
2.3 As with all refunds in the current Development Charges By-Law, this refund will
be reviewed when the By-Law is reviewed and updated as required every five (5)
years.
REPORT NO.: ADDENDUM TO FND-014-07
PAGE 3
RECOMMENDATIONS:
3.0 Based on a review of the applicable legislation, it is recommended that an
amendment to the Background Study, May 2005 is not required nor is a further
public meeting. It is recommended that the attached By-Law (Attachment #2) be
recommended to Council for enactment.
Attachment #1 - Report #FND-014-07
Attachment #2 - By-Law to amend By-Law 2005-108
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L 1C 3A6 T (905)623-3379 F (905)623-4169
"
(
(
(
-- "
,.
Attachment #1
Cl~kJgton
REPORT
FINANCE DEPARTMENT
Meeting:
GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
Date:
JUNE 18,2007
Resolution #:
Report #: FND-014-07
File#:
By-law #:
Subject:
DEVELOPMENT CHARGES BY-LAW AMENDMENT:
MAJOR OFFICE BUILDINGS IN ENERGY AND SCIENCE PARKS
Recommendations:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. THAT Report FND-014-07 be received;
2. THAT based on a review of S 10(2) of the Development Charges Act, there is no
'n~~dtQalterQramend the DevBlopmenfCharges Background Study, May 2005,
prepared by Hemson Consulting Ltd.;
3. THAT the exemption provided for in the amendment to the By-Law is proposed to
be effective on September 10, 2007;
4. THAT a public meeting be held on September 4,2007 in accordance with
Section 19 of the Development Charges Act;
Reviewed by:
Franklin Wu,
Chief Administrative Officer
NT/na
REPORT NO.: FND-D14-D7
PAGE 2
(
BACKGROUND:
1.0 On June 27,2005, Council adopted the existing development charges with the
approval of Report FND-007-05 and the accompanying By-Law 2005-108. This
By-Law, by statute expires after five years or June 30,2010.
DEVELOPMENT CHARGE BY-LAW AMENDMENT PROCESS:
2.0 The DCA, 1997, allows a municipality to amend an existing development charges
by-law. Section 19 of the Act sets out the requirements related to this procedure:
19. (1) Sections 10 to 18 apply, with necessary modifications, to an amendment
to a development charges by-law other than an amendment by, or pursuant to
an order of, the Ontario Municipal Board.
19. (2) In an appeal of an amendment to a development charges by-law, the
Ontario Municipal Board may exercise its powers only in relation to the
amendment.
(
2.1 To amend a development charges by-law a municipality must go
through the same public process associated with enacting a development
charges by-law. It needs to complete a background study outlining the purpose
of the amendment and the rationale for the amendment. This document serves
as the background study required under s.1 0 of the Act.
2.2 A municipality also has to hold a public ml'leting on the am~ndment. _havin~
provided three weeks -notice of the meeting, and has to have made the
background study and proposed by-law amendment available two-weeks prior to
the meeting. The public meeting is proposed for Sept 4, 2007 and will be
advertised commencing August 13, 2007. The applicable documents will be
available at the Clerk's Department commencing August 7, 2007.
2.3 Section 19(2) of the DCA is important because it allows for an amendment to an
existing by-law to be passed without exposing the unaltered portions of the by-
law to appeal. When amending a development charge by-law only the section(s)
of the by-law amended or added is subject to appeal and consideration by the
OMB.
BACKGROUND STUDY REQUIREMENTS:
3.0 The by-law currently provides for a 50% refund for industrial buildings that are
LEED certified. Given the intent of the Energy Business Park Plan and the
Science and Technology Park to attract an array of prestige employment, there
are instances where some uses will not fall within the definition of "industrial" as
REPORT NO.: FND"()14"()7
PAGE 3
c
currently provided for in the Development Charges By-law. The proposed
amendment to provide a 50% refund for major office buildings that are LEED
certified within the Clarington Energy Park as identified in Schedule 6(a) and the
Clarington Science and Technology Park as identified in Schedule 6(b) to By-law
2005-108 will not result in any individual developer or land owner in the
Municipality paying a higher development charge after the by-law is amended.
The exemption will result in some lost development charges revenues that the
Municipality will need to offset from other revenue sources if any growth related
capital costs are required as a result of the exemption being provided.
3.1
Section 10(1) of the DCA, 1997, sets out the requirement for a municipality to
complete a development charge background study prior to the passage of a
development charge by-law or amendment. Subsection 10(2) identifies what is to
be included in the development charge background study. These legislative
requirements are summarized as follows:
s.10(2)(a) - estimate the amount, type and location of development
to which the development charge [amendment] is to apply;
c
s.10(2)(b) - establish the eligible growth-related costs and services (as
determine under paragraphs 2 to 8 of subsection 5(1) of the DCA, 1997) to
which the development charge by-law [amendment] would relate;
s.10(2)(c) - examine, for each service to which the development
charge by-law [amendment] relates, the long term capital and operating costs for
the capital infrastructure required.
3.2
The amendment proposed is not altering the 'amount, type and location of
development' or growth-related capitat Costs that forrn the basis of tfie charge
determined in the 2005 Background Study so s.10(2)(a),(b) and (c) are not
relevant. The proposed amendment therefore does not require an amendment to
the Development Charges Background Study, May 2005 and this document
serves as the background study required under Section 10 of the Act.
PROPOSED AMENDMENT:
4.0 In order to provide for a 50% refund for major office buildings in lands identified
as the Clarington Energy Park and the Clarington Science and Technology Park,
the Development Charges By-law 2005-108 must be amended in two areas. The
definitions in Section 1 (1) must be expanded and an additional subsection must
be added to Section 23, Rules Respecting Refunds. The intent of including a
minimum floor area is to encourage larger building that can provide for the scale
of development desired for this area. It is not dissimilar to the exemption provided
for larger hotels.
c
,
c
(
(
.
REPORT NO.: FND.014.07
PAGE 4
4.1 It is proposed that Major Office Building be defined as "a building containing
business, administrative, and/or professional offices and associated ancillary
services containing a minimum of 5,000 square metres of gross floor area."
4.2 Section 23(4) reads as follows: An amount equal to fifty percent of the applicable
development charge paid at the time the building permit was issued for industrial
development in the Municipality which is certified and registered with the Green
Building Council of Canada as meeting the LEED Canada-NC 1.0 Rating System
(or its successor). It is proposed that section 23(4) be amended as follows: after
the "was issued for," insert "major office buildings on lands identified in Schedule
6A and Schedule 6B and".
RECOMMENDATIONS:
5.0 Based on a review of the applicable legislation, it is recommended that an
amendment to the Background Study, May 2005 is not required. It is
recommended that the appropriate By-Law be recommended to Council for
enactment after comments received at the September 4, 2007 public meeting.
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L 1C 3A6 T (905)623-3379 F (905)623-4169
Attachment #2
THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
BY-LAW NO. 2007-
To amend By-Law 2005-108
a By-Law to impose development charges against land
in the Municipality ofClarington
pursuant to the Development Charges Act, 1997,
to provide for a 50% refund of development charges fees
for major office buildings that are LEED certified on lands
identified in Schedules 6A and 6B
WHEREAS Section 19 of the Development Charges Act, 1997 sets out the procedure for
amending a development charges By-Law;
AND WHEREAS Council has before it Report FND-014-07 which serves as a
Background Study pursuant to Section 10 of the Act;
AND WHEREAS Council gave notice to the public of a public meeting and held a public
meeting pursuant to Section 12 of the Act on September 17, 2007, prior to which the
Study and a proposed amendment to the development charges by-law were made
available to the public, Council heard comments and representations from all persons
who applied to be heard (the "Public Meeting") and considered Report FND 014-07 (the
"Staff Report" and "Background Study") dated June 18,2007;
AND WHEREAS staff of the Municipality considered the public comments and
representations made at the Public Meeting at the meeting of the General Purpose and
Administration Committee held on September 17, 2007;
AND WHEREAS at its meeting on September 24, 2007, by Resolution No. C- -07
Council approved the recommendations contained in the Addendum Report FND-014-07;
NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE
MUNICIPALITY OF CLARINGTON ENACTS AS FOLLOWS:
1. Section I (I) of By-Law 2005-108 being a by-law to impose development charges
against land in the Municipality of Clarington pursuant to the Development
Charges Act is amended by adding the following definition to it:
"major office building," means a building containing business, administrative,
and/or professional offices and associated ancillary services containing a
minimum of 5,000 square metres of gross floor area.
2. Section 23 (4) of By-Law 2005-108 is amended by inserting after the phrase "was
issued for" as follows:
"major office buildings on lands identified in Schedule 6A and Schedule 6B and".
Date Bv-Law Effective
This By-Law comes into force and is effective on September 24,2007.
THIS BY-LAW READ A FIRST, SECOND, AND THIRD TIME, AND PASSED ill
OPEN COUNCIL THIS 24TH DAY OF SEPTEMBER, 2007.
Jim Abernethy, Mayor
Anne Greentree, Deputy Clerk